This is the good news of the start of the year.
Interest rates have never been lower for mortgage borrowers.
“They reached a new historical record in February, doing even better than in the fall of 2019”, his previous record, explains Maël Bernier, spokesperson for the comparator Meilleurtaux.com.
Despite the exceptional circumstances linked to the Covid-19 pandemic, the average interest rate offered by banks for February is 0.82% over 15 years, 1.22% over 20 years and 1.26% over 25 years.
"The new health measures have no effect on banking offers, unlike the first confinement last March", adds the professional, who notes a decline of "only 21% of loan requests in 2020" compared to 2019, mainly in because of the spring containment.
At the same time, the French appetite for real estate seems more than ever to be present.
According to the latest figures from the comparator, file submissions increased in January by 10% compared to January 2020, which was already considered an exceptional month in this area.
Bank side, production targets for 2021 would remain high, "at the same level as last year", according to Meilleurtaux.
Facade softening?
Even the High Council for Financial Stability (HCSF), the very strict authority responsible for supervising and regulating the financial system, has decided to give up ballast.
Going back on its recommendations issued at the end of 2019, it relaxed in mid-December three of the conditions for granting real estate loans imposed on banks.
Now, the debt ratio is raised by two points, from 33% to 35%.
The maximum duration of loans is extended by two years, from 25 to 27 years in the event of purchase in the new and under conditions of work in the old (at least 25% of the total amount).
Finally, the latitude offered to banks to derogate from these rules is reduced from 15% to 20%.
Immediately, real estate professionals greeted this good news synonymous with revival of loans.
But is this good news for borrowers?
Not so sure.
Because when this new recommendation was published on January 28 on its website, the HCSF discreetly inserted a "notice" in which it considerably reduced the scope of its flexibilities.
The authority takes care to remind banks of their obligation to systematically include the cost of insurance in the calculation of annual credit charges.
A legal constraint that many banking institutions actually circumvent.
"When preparing the loan file, some banks avoid including the insurance rate to stay within the nails of 33%
(Editor's note: now 35%)
of maximum debt imposed by the High Council, specifies Astrid Cousin, spokesperson for the loan insurance comparator Magnolia.fr.
For certain profiles, in particular young people without contribution or borrowers at risk, excluding insurance from this calculation could allow them to borrow, which will no longer be possible at all, ”she underlines.
And a banker to plead: "Loan insurance is by no means a legal obligation and is not comparable to a debt".
More borrowers excluded from credit
This new restriction could even exclude certain borrowers from mortgage loans.
"The fact of systematically including borrower insurance cancels out the gain in borrowing capacity generated by the increase in indebtedness, which rose from 33% to 35% by the High Council for Financial Stability", analyzes Sandrine Allonier, director of studies at the comparator Vousfinancer.
"This new constraint takes back with one hand at the end of January what it had granted to the banks in mid-December", groans for his part Maël Bernier.
With a serious prejudice for the borrower, because the cost of insurance varies according to his profile, his age, his state of health and, of course, according to the insurer himself (the creditor bank or an institution delegate)!
"From 0.3% to nearly 1%, the cost can greatly increase the final bill," said Astrid Cousin, who calls, more than ever, to compare the offers of loan insurance specialists.
